RECTICEL Analyst Meeting 1H2013 Results
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
355
On Slideshare
355
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
7
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. RECTICEL 1st HALF-YEAR 2013 RESULTS Financial Analysts‟ Meeting Brussels, 30 August 2013 Olivier Chapelle – CEO Recticel Jean-Pierre Mellen – CFO Recticel Michel De Smedt – IRO Recticel 30 Aug 2013 Recticel 1H/2013 Results 1
  • 2. 1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 2
  • 3. European markets & non-recurrings impacted Recticel during 1H/2013 ► Sales decreased by 7.0% from 680.2m€ to 632.6m€, but trend improved during Q2 at -4.4% and after Q1 at -9.5% ► REBITDA of 33.3m€ (-31.3%) as a result of lower sales and unfavourable mix ► EBITDA of 20.2m€ (-54.6%) impacted by announced restructurings and legal fees ► Result of the period (share of the Group): -10.1m€ ► Net financial debt: from 179.0m€ (30/06/12) to 156.1m€ (30/06/13) (31/12/12 : 172.6m€) 30 Aug 2013 Recticel 1H/2013 Results 3
  • 4. Difficult European context during H1 Low industrial activity and consumer spending, while inflation persists : ► Markets have suffered :  EU27 automotive market (new car registration) • 1H13 is the worst semester since 1996  Slow Moving Consumer Goods as beds, furniture, TV‟s, Computer, … •  not selling  Depressed construction markets in Western Europe (except Germany), aggravated by weather conditions in 1Q13 •  low activity ► While inflation has persisted, creating additional margin pressure :  labour  energy & transportation costs  raw materials 30 Aug 2013 Recticel 1H/2013 Results 4
  • 5. We stick to our Strategic Plan execution (1) Growth Initiatives : Investments & Innovation ► Growth & Geographic Diversification  Insulation - Bourges plant now operating on 1 full shift  Bedding – 30 Znoooz Points of Sales in Belgium (Geltex exclusivity)  Flexible Foams – Turkey, India and China have grown by 30% YoY  Automotive Interiors – all three Chinese facilities up and running ► Innovations  Insulation : Etics introduced in UK, now ready for Belgium  Bedding : introduction of Geltex in most Western European markets  Automotive Interiors : Colosense Lite introduction and new contracts won with Volvo, Volkswagen, and Daimler 30 Aug 2013 Recticel 1H/2013 Results 5
  • 6. We stick to our Strategic Plan execution (2) Rationalisation and Simplification: Restructuring plan 2013 is ongoing and on track:    Interiors : Rheinbreitbach (DE) Flexible Foams : Pendle (UK) Bedding : Wattenscheid (DE) 30 Aug 2013 Recticel 1H/2013 Results 6
  • 7. We stick to our Strategic Plan execution (3) Organisation ► New strategy and reorganisation in Bedding ► Shared Service Centre for transactional operations further progressing ► Key change in Senior Management Team  Jean-Pierre De Kesel (Be – 57) 30 Aug 2013 Chief Sustainability Officer Recticel 1H/2013 Results 7
  • 8. 1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 8
  • 9. Net sales down, but trend improved during 2Q/13 ► Net Sales: From 680.2m€ to 632.6m€ (-7.0%)   ► ► ► 1Q/13: from 351.1m€ to 317.9m€ (-9.5%) 2Q/13: from 329.1m€ to 314.8m€ (-4.4%) 94% of Group sales in European region 2/3rd of the sales reduction due to Automotive (31.6m€ out of 47.6m€) Impact currency exchange differences (-0.3%) y/y: -19.6% Automotive 19.2% y/y: +0.0% Insulation 16.2% Flexible Foams 43.9% y/y: -2.1% Bedding 20.7% y/y: +4.8% (like-for-like: -4.4%) 30 Aug 2013 Recticel 1H/2013 Results 9
  • 10. Except for Automotive, good relative top-line resilience in all segments ► Building Insulation sales (+1.4%) grew again in 2Q13 after negative 1Q13  ► Bedding sales (-4.4%) resisted well in depressed European bedding market (exception of Germany only slightly negative)  ► ► Kingspan -3%, Rockwool -4% Beterbed -8.3% Flexible Foams (-2.1%) limited impact by its wide geographical and segment positioning to dampen GDP evolution impact. Automotive sales (-19.6%) impacted by poor market and announced program run-outs in USA and Germany. in million EUR Flexible Foams Bedding Insulation Automotive Eliminations Total 1Q/2012 157,4 73,6 53,0 82,4 ( 15,4) 351,1 2Q/2012 146,1 60,0 56,5 78,9 ( 12,4) 329,1 1H/2012 303,5 133,6 109,5 161,3 ( 27,8) 680,2 1Q/2013 151,5 75,5 49,9 63,5 ( 22,5) 317,9 2Q/2013 145,8 64,5 59,6 66,2 ( 21,3) 314,8 1H/2013 297,3 140,0 109,5 129,7 ( 43,9) 632,6 D 1H -2,1% 4,8% 0,0% -19,6% 58,0% -7,0% Footnote: In 2013 some intercompany activities which were previously eliminated within the segment Flexible Foams have been transfered to the Bedding segment. As a result of this internal transfer Bedding includes new intersegment sales for EUR 12.3 million which are also increasing 'Eliminations' with the same amount. 30 Aug 2013 Recticel 1H/2013 Results 10
  • 11. REBITDA impacted by lower sales and mix (1) ► REBITDA : from 48.9m€ (restated, 48.5m€ as published) to 33.3m€ (-31.9%)   In a challenging environment, resulting in increased competitive pressure, the reduced overall recurrent profitability is also explained by: • the lower sales levels • an unfavourable segment mix Average 1H13 raw material market prices increased by 1% vs 1H/12 30 Aug 2013 Recticel 1H/2013 Results 11
  • 12. REBITDA impacted by lower sales and mix (2)     Insulation REBITDA impacted by Sterling Pound depreciation, fixed and start-up costs in Bourges and by margin pressure due to increased competition. Bedding REBITDA slightly up despite sales reduction, thanks to the Geltex introduction supporting the Brand segment. Flexible Foams REBITDA down on the slightly lower sales combined with increased competition. Automotive REBITDA decreased less than proportionally to the lost contribution. PER QUARTER in m€ Q2/13 Q1/13 Q2/12 Q1/12 FLEXIBLE FOAMS 8.20 6.80 6.65 10.59 BEDDING 0.93 3.78 1.52 3.12 AUTOMOTIVE 5.06 3.41 7.02 8.81 INSULATION 7.66 5.00 9.56 9.25 Corporate -3.42 -4.12 -3.67 -4.34 GROUP REBITDA 18.43 14.87 21.07 27.42 30 Aug 2013 Recticel 1H/2013 Results 12
  • 13. REBIT evolves according to REBITDA From 29.3m€ (restated) (28.8m€ as published) to 13.4m€ (-54.1%) 30 Aug 2013 Recticel 1H/2013 Results 13
  • 14. Non-recurring costs increased to -14.3m€ (-4.9m€ in 1H/12)      Downsizing of activities in Rheinbreitbach (Germany) (Automotive Interiors); reduction of 150 jobs (on total of 178) Closing of Flexible Foams converting unit in Nelson (UK) (Flexible Foams); reduction of 95 jobs Streamlining of Bedding operations in Germany; reduction of 20 jobs Provision for 1.2m€ to cover the estimated costs of regularisation in relation to the irregularities that took place in one of its subsidiaries over the period 20012010 Incurred additional legal fees in its defence under the investigations of the EU Directorate for Competition and Bundeskartellamt 30 Aug 2013 Recticel 1H/2013 Results 14
  • 15. EBITDA & EBIT impacted by non-recurring ► EBITDA: from 44.5m€ (restated) (44.1m€ as published) to 20.2m€ (-54.6%) ► EBIT: from 24.4m€ (restated) (24.0m€ as published) to -0.8m€ Includes also an impairment of -1.2m€ relating to equipment in Automotive Interiors (Germany). 30 Aug 2013 Recticel 1H/2013 Results 15
  • 16. Financial result improved and taxes logically decreased ► Financial result: from -7.4m€ (restated) (-7.1m€ as published) to -6.5m€ (12.1%)   ► Income taxes and deferred taxes: from -4.9m€ to -2.8m€   ► Net interest charges decreased to -5.4m€ (-6.0m€ in 1H/2012). This decrease is primarily attributable to lower funding rates, whereas the average net interest-bearing debt, including the usage of „off-balance‟ factoring/forfeiting programs, increased with the financing of the new Insulation plant in France (241.8m€ versus 224.6m€ in 1H/2012). „Other net financial income and expenses‟ (-1.0m€, compared to -1.3m€ in 1H/2012 (restated)) comprise mainly interest capitalisation costs under provisions for pension liabilities. Current income tax charges: -2.2m€ (-1.4m€ in 1H/2012) mainly incurred in Eastern Europe, Germany, Austria and China; Deferred tax charges: -0.6m€ (-3.5m€ in 1H/2012). Result of the period (share of the Group): from 12.1m€ (restated)(12.0m€ as published) to -10.1m€ 30 Aug 2013 Recticel 1H/2013 Results 16
  • 17. 1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 17
  • 18. Trade working capital has been reduced 2012 2013 in m€ Avg 1H/12 Avg 1H/13 98.1 16.2% 16.5% m€ 15.5 14.5 % 9.8% 10.9% m€ 37.8 33.5 16.3% 13.9% 38.1 37.0 12.6% 11.8% 19.3 14.2 14.8% 12.7% m€ 211.4 197.3 % Insulation 100.7 % Interiors + Exteriors m€ % Flexible foams 14.6% 14.1% % Bedding m€ % Proseat NWC Group 30 Aug 2013 TARGET 2013 m€ Recticel 1H/2013 Results 16.0% 10.0% 14.0% 12.0% 12.0% 18
  • 19. Net debt is stable and net financial debt has been reduced ► ► On 30/06/13 the Group‟s net financial debt amounted to 156.1m€, excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs of 73.5m€ compared to respectively 179.0m€ and 49.4m€ on 30/06/12 and to 172.6m€ and 45.0m€ on 31/12/12. Net debt including factoring/forteiting at same level as 30/06/12. The debt increase due to financing of Bourges plant was fully absorbed by cash saving measures including working capital management. 30 Aug 2013 Recticel 1H/2013 Results 19
  • 20. Equity has been reduced, impacting the gearing ► ► ► The equity on 31/12/12 has been restated in compliance with the new IAS 19 standard, with an impact of -19.5m€ from 260.6m€ to 241.1m€. On 30/06/2013 the equity amounts to 217.3m€. Hence, the „net debt to equity‟ ratio increased to 71.8%, compared to 66.2% at year-end 2012 (or 71.6% after restatement for IAS 19). The Group maintains its corporate objective to further reduce the gearing ratio below 50%. 30 Aug 2013 Recticel 1H/2013 Results 20
  • 21. 1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 21
  • 22. Miscellaneous ► Contingent assets & liabilities  Inspection by the Directorate for Competition of the EC • Although the Commission has given no formal indications regarding its findings, it is progressing with its investigation. At this stage, the Group is not in a position to make a reliable estimate as to its possible financial consequences.  Inspection by the German Federal Cartel Office (“Bundeskartellamt”) • No further developments to be reported 30 Aug 2013 Recticel 1H/2013 Results 22
  • 23. 1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 23
  • 24. Outlook Given the persisting volatility in the performance of the markets in which Recticel is active, the Group is not in a position to assess growth potential for 2013. The Group maintains its focus on the execution of the strategic plan 20102015, which includes (i) a strict prioritization of the allocation of its resources to its portfolio of business, (ii) a continuous effort to streamline operations and reduce complexity, (iii) geographical diversification to reduce dependency on Europe and (iv) the introduction of new innovative solutions. 30 Aug 2013 Recticel 1H/2013 Results 24
  • 25. 1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 25
  • 26. ► Key events 1H/2013  Sales from 303.5m€ to 297.3m€ (-2.1%) • 1Q/2013: from 157.4m€ to 151.5m€ (-3.8%) • 2Q/2013: from 146.1m€ to 145.8m€ (-0.2%) ► Sales Flexible Foams (2010-2013) Comfort (1H/2013: 189.4m€ ; -1.4%) 160 in million EUR  155  ► 150 Technical Foam s 36% 145 140 Technical Foams (1H/2013: 107.9m€ ; -3.1%)  Comfort 64% very weak market environment reported only a slight regression in sales impacted by the lower level of activity in its various industrial and automotive markets, especially in Spain, the Nordic countries and France Footnote: As from 2013, the previous sub-segment ‘Composite Foams’ has been re-integrated into the sub-segments ‘Comfort’ and ‘Technical Foams’ in line with the new managerial organisation. 1H/2012 references have been retreated accordingly. 135 130 1Q 2Q 3Q 4Q 2010 2011 2012 2013 30 Aug 2013 Recticel 1H/2013 Results 26
  • 27. ► Key events 1H/2013  Sales from 133.6m€ to 140.0m€ (+4.8%)(on like-for-like basis: -4.4%) • 1Q/2013: from 73.6m€ to 75.5m€ (+2.5%) (on like-for-like basis: -5.9%) • 2Q/2013: from 60.0m€ to 64.5m€ +7.6%) (on like-for-like basis: -2.6%) ► Sales Bedding (2010-2013) 80 ► in million EUR 70 60 50 Private Label 43% 40 Brands 57% ► 30 As from 2013 some intercompany activities, which were previously eliminated within the segment Flexible Foams, have been transferred to the Bedding segment. Activity suffered from a globally reduced consumer confidence leading to a delay in the purchase of slow moving consumer goods. Stable sales in the Brands sub-segment (1H/2013: 72.9m€; -0.4%)  20 ► 10 00 1Q 2Q 2010 2011 3Q 2012 4Q 2013 30 Aug 2013 Successful market introduction of innovative Geltex® technology in Switzerland, Belgium, the Netherlands and France. Lower sales in Private label sub-segment (1H/2013: 54.7m€; -7.8%)  highly competitive low margin market segments in Belgium and Germany Recticel 1H/2013 Results 27
  • 28. ► Key events 1H/2013  Sales from 109.5m€ to 109.5m€ (+0.0%) • 1Q/2013: from 53.0m€ to 49.9m€ (-5.8%) • 2Q/2013: from 56.5m€ to 59.6m€ (+5.5%) ► Sales Insulation (2010-2013) New plant Bourges Building Insulation (1H/2013: 102.6m€; +1.4%)  softer residential construction and renovation activity in the major markets 60  bad weather conditions in the first quarter of the year 50  Structural demand for high performing polyurethane building insulation products is expected to remain high as a result of stricter insulation standards and regulations, higher energy prices and growing awareness of the need for more and better insulation.  The start-up phase of the new factory in Bourges is now completed and the performance has reached the expected level. in million EUR 70 Industrial 6% 40 30 Building 94% 20 10 00 1Q 2010 2Q 2011 3Q 2012 4Q 2013 30 Aug 2013 ► Industrial Insulation (1H/2013: 6.9m€; -17.3%) Recticel 1H/2013 Results 28
  • 29. ► Key events 1H/2013  Sales from 161.3m€ to 129.7m€ (-19.6%) • 1Q/2013: from 82.4m€ to 63.5m€ (-23.0%) • 2Q/2013: from 78.9m€ to 66.2m€ (-16.1%) ► Sales Automotive (2010-2013) Interiors (1H/2013: 57.8m€; -27.8%)  Decrease due to a weak demand but also as a result of the anticipated phase-out of some contracts, mainly in the USA  100 Unlike the Western markets, the operations in China recorded a substantial growth, though on small scale. 90 in million EUR 80 Exteriors 4% 70 60 Seating 51% 50 40 Interiors 45% ► Seating (Proseat-51/49JV) (1H/2013: 66.3m€; -11.8%)  30 20 ► 10 Sales fell less than global European automotive market (more than -7,5%) Exteriors (1H/2013: 5.6m€; -8.2%) 00 1Q 2010 2Q 2011 3Q 2012 4Q 2013 30 Aug 2013 Recticel 1H/2013 Results 29
  • 30. 1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 30
  • 31. ANNEXES – Consolidated Income Statement 30 Aug 2013 Recticel 1H/2013 Results 31
  • 32. ANNEXES – Consolidated Comprehensive Income 30 Aug 2013 Recticel 1H/2013 Results 32
  • 33. ANNEXES – Consolidated Balance Sheet 30 Aug 2013 Recticel 1H/2013 Results 33
  • 34. ANNEXES – Consolidated Statement of Cash Flow 30 Aug 2013 Recticel 1H/2013 Results 34
  • 35. ANNEXES – Statement of Changes in Equity 30 Aug 2013 Recticel 1H/2013 Results 35
  • 36. ANNEXES – Data per share 30 Aug 2013 Recticel 1H/2013 Results 36
  • 37. CONTACTS Recticel International Headquarters 2, avenue des Olympiades/Olympiadenlaan, 2 B-1140 Brussels Tel: +32 (0)2 775 18 11 Fax: +32 (0)2 775 19 90 Investor Relations Michel De Smedt Press Jan De Moor Email: desmedt.michel@recticel.com Tel: +32 (0)2 775 18 09 Mob: +2 (0) 479 91 11 38 Fax: +32 (0)2 775 19 90 Email: demoor.jan@recticel.com Tel: +32 (0)2 775 18 95 Mob: +2 (0) 475 42 78 26 Fax: +32 (0)2 775 19 90 Financial calendar First half-year 2013 results Third quarter 2013 trading update FY2013 Results First quarter 2014 trading update Annual General Meeting First half-year 2014 results Third quarter 2014 trading update 30.08.2013 (before opening of the stock exchange) 31.10.2013 (before opening of the stock exchange) 28.02.2014 (before opening of the stock exchange) 07.05.2014 (before opening of the stock exchange) 27.05.2014 (at 10:00 AM CET) 29.08.2014 (before opening of the stock exchange) 31.10.2014 (before opening of the stock exchange) For more product information or direct business contacts, please consult our web site www.recticel.com, where interested parties can also find our press releases and slide presentations of our annual or half year results. Customers, suppliers, shareholders, investors and all other stakeholders and interested parties who wish to receive Recticel‟s annual report and/or its regular press releases, are invited to subscribe to Recticel‟s email alert on the above web site address. This service is free of charge. 30 Aug 2013 Recticel 1H/2013 Results 37